To be honest, I am very frustrated with many oil analysts who blame speculators for the increase in price of oil. They seem oblivious to the historic shifts in the economy that is causing prices to fly. They have this insane belief that if somehow we limited speculating in oil, that somehow the price would be magically lower. That is ridiculous and naïve. Just look at the world around you. Acknowledge what is happening in all commodities, even ones that are not traded on exchanges.
The fundamentals are about as bullish as it gets. We are being driven by geopolitics, deficits, wars, and the growing lack of confidence in the currency that the commodities are traded in. Analysts who should know better are feeding into this mob like hysteria and before you know it, the next thing they will try to do is confiscate commodity trader's profits as opposed to just wasting our money on a publicity grabbing, self servicing investigation.
I'm calling the critics of speculation out! I want reasons why you believe that speculators are the driving force behind higher prices rather than reflecting the fundamentals.
The Yemen leader agrees to step down. Yes, in the meantime, more political uncertainties continue to rise over the weekend and the President of Yemen promised to step down in a few weeks as long as he could get political asylum. Yet the protests go on. Yemen has been an ally to the U.S. in the war on terror and there is a concern of course that Al Qaeda will try to take control. In Libya the war rages on. In Syria a violent crackdown continues. All commodities are rallying and not just oil.
Phil Flynn is senior energy analyst for PFGBest Research and a Fox Business Network contributor. He can be reached at (800) 935-6487 or at firstname.lastname@example.org.